The following trial balance was prepared for Village Cycle Sales and Service on December 31, 2013, after the closing entries were posted:

Debit Credit

Cash $46,200

Accounts Receivable $21,300

Allowance for Doubtful Accounts $1,350

Inventory $85,600

Accounts Payable $28,000

Common Stock $80,000

Retained Earnings $43,750

Total $153,100 $153,100

Village Cycle had the following transaction in 2014:

1. Purchased merchandise on account for $260,000.

2. Sold merchandise that cost $243,000 on account for $340,000.

3. Performed $80,000 of services for cash.

4. Sold merchandise for $60,000 to credit card customers. The merchandise cost $41, 250. The credit card company charges a 5 percent fee.

5. Collected $348,000 cash from accounts receivable.

6. Paid $265,000 cash on accounts payable.

7. Paid $115,000 cash for selling and administrative expenses.

8. Collected cash for the full amount due from the credit card company. (see item 4).

9. Loaned $50,000 to Lee Supply. The note had a 9 percent interest and a one-year term to maturity.

10. Wrote off $830 of accounts as uncollectible.

11. Made the following adjusting entries:

(a) Recorded three months' interest on the note at December 31, 2014 (see item 9)

(b) Estimated uncollectible accounts expense to be .5 percent of sales on account.